Sir, I am a pensioner getting around Rs. 2 Lacs per
annum. After including MIS, NSC, etc Interest, total income works out to approx
Rs. 2,72,000/-. I am investing Rs. 75,000/- in the tax saving instruments. After
availing basic exemption of Rs. 2, 40,000/-, my tax is Nil. Please advise me
whether I have to file a return? I have been told that according to latest development,
no return is required to be filed if the income is up to Rs. 5 Lacs. [muthuswamyiyer@gmail.com]

Opinion:

For the FY 2011-12 (A.Y:
2012-13),

1.You would not be required
to file the return of income if you are a very senior citizen (80 years & above) as the basic
exemption limit is 5 Lacs for very senior citizen.

2.If, however,
you are below the age of 80 years, you would be required to file the return of
income as the basic exemption limit would be Rs. 2.50 Lacs only & your
gross total income is exceeding Rs. 2.50 Lacs.

Query
2]

Sir, please provide the following
information in making/ taking a gift:

1.Whether it
is to be executed on a judicial/non judicial stamped paper?

2.Whether it
is to be registered in any Government office?

3.Whether Donor
or Donee is to be a PAN card holder?

4.What should be
done to inform the IT Department about the execution to avoid tax deduction?
Any other information to make the execution perfect & correct
in all respects from Income Tax point of view.
[ramanmurthynov10@gmail.com]

Opinion:

1.For the purpose of Income Tax Act-1961, you can make the gift even by simply executing the gift deed
on plain paper

2.Registration is not mandatory for gift of
moveable property. However, for Gift of
immoveable property, Registration is compulsory under the Registration Act.

3.PAN is not mandatory for making a gift.

4.There is no specific provision/ Law to inform the IT
Department about the gift done or to be done. Also, the gift is not subject to
the TDS provision.

Query
3]

1.My father is
a regular income tax & wealth tax assessee. Two year back, he has
constructed a commercial complex in Raipur
on which he is generating an annual rent of Rs. 7.20 Lacs. He has paid the
wealth tax on the commercial complex as well, in addition to income tax on the
rental income received. I read somewhere that no wealth tax liability arises in
such cases. The other opinion that we have received is that the wealth tax will
not be applicable if it is used for own business. Please clarify whether wealth
tax is applicable in my father’s case? Please also advise if it is not
applicable, whether I can get back the wealth tax already paid in the previous
year?

2.In one of
our closely held company wherein myself & my father are the only
shareholder & Director, the sales has increased by 62% as compared to
previous year. Whether as a result of such a drastic increase in sales, the
company can pay additional commission of say 25% more as compared to the
percentage of sales commission paid in earlier year? I have been told that the
excess commission is disallowable u/s 36(1)(ii). However, I think that the
excess commission is logical & justifiable and hence can be allowed. Please
Advice. [shrigopal215@gmail.com]

Opinion:

1.Any property in
the nature of commercial establishment or complex is not an asset under section 2(ea)(i)(5) of the Wealth Tax Act
& accordingly it is not chargeable Wealth Tax. It may be noted that u/s
2(ea)(i)(5), it is not necessary that the property in the nature of commercial
establishment or complexes should be occupied by the assessee for the purpose
of his own business or profession, carried out by him only. What is necessary
is the use of the property,
irrespective of the fact whether it is used or occupied by the assessee himself
or by anyone else for the purpose of any business or profession carried on by
them.
In your case, you have already filed the return & paid the tax. If there is
mistake in the original return filed, a revised return can be filed before the
expiry of one year from the end of the relevant assessment year or before the
completion of assessment, whichever is earlier.
If however, said time limit has expired, a rectification application can be
filed u/s 35 of the Wealth Tax Act.

2.The facts &
circumstances of each & every individual case determines the availability
of deduction u/s 36(1)(ii) of the Income Tax Act-1961. If the extra commission
is paid for the services rendered & justified for the reason given in the
query, the same would be allowable as expenses. It may be noted that the
commission paid in lieu of dividend or profit, the same will be
disallowed [Loyal Motro Service Co. Vs. CIT (1946) 14 ITR 647 (Bom)].

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